State Farm plans to send rebate checks averaging about $100 per vehicle to millions of its auto insurance customers, the company announced.
The payments are part of a $5 billion policyholder dividend from State Farm Mutual Automobile Insurance Company. The amount each customer receives will vary by state and premium paid, the company said.
The insurer said the dividend is possible due to its "financial strength and stronger-than-expected underwriting performance."
“As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future,” State Farm Mutual President and CEO Jon Farney said in a statement. “That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.”
The rebates will begin going out this summer, State Farm said.
In addition to the rebate, the company said it has lowered auto insurance rates in 40 states in recent months as auto repair costs and collision frequency have declined.
